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Below the Quote On Morning Market 10 August 2023 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The market today will be focussed on the MPC’s decisions on rates, stance and communication on tone. The near market consensus is that the rates and stance will remain unchanged and the tone will be hawkish in view of the high inflation. Any deviation from these expectations can move the markets.

Globally markets would be focused on the U.S. CPI numbers to be released today. The Fed’s rate action will be based on that. The disinflationary process in the US is likely to continue.
A major development which is significant for global markets in general and India in particular is the news of the Chinese economy tipping into deflation. This is bad news for global growth but from India’s perspective the positive likely fall out is that there can be more FPI outflows from China to India. Stocks which FPIs have been buying will benefit.

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